Grady: To Lease Or Not To Lease?

By Lynne Riley, Fulton County Commissioner

Fulton County Commissioner Lynne Riley

In January, the Fulton-DeKalb Hospital Authority (Grady Board) voted to lease the facilities and operations of the Grady Health System to a non-profit corporation (Grady Corp). This followed more than a year of exhaustive analysis of the actions needed to save the insolvent institution. The consensus opinion supported the transfer of management, which would provide additional funding opportunities and improvements in management efficiencies.

As guarantors of the long-term bond debt of Grady, Fulton and DeKalb Counties must consent to the lease action. Over the past three weeks, I have devoted extensive time to careful review of the lease terms. My primary concerns related to the 1984 contract for indigent care services that Fulton and DeKalb County currently hold with the Grady Board. It is of critical importance that the terms of this contract be upheld by the new Grady Corp. The lease that was approved by the Fulton County Board of Commissioners on February 20 does include the full assumption of performance of all of the provisions of the 1984 contract. It also affirms the financial accountability terms of the 1984 and 1992 contracts in force with the Grady Board. It is my pledge to monitor compliance with the terms of the lease as a function of my elected role to defend the rights of the taxpayers of Fulton County.

The directors of the Grady Corp are business leaders with proven management experience who will bring their resources and track record of success to a failing institution.

When faced with the choice of maintaining a clear course to disaster or accepting the benevolence of the business and philanthropic leadership of Georgia, the selection was easy. My support of the lease is based on my commitment to assist in the transfer of management when I may add value, and my confidence in the dedication of the Grady Corp Directors to preserve and enhance the mission of the Grady Health System.

Two challenges remain in protecting the interests of Fulton County taxpayers. The directors of the Grady Corp have committed to work with me to develop a protocol for residency validation and a measurable definition of those who are eligible for health care as indigent sick. Currently, patients are seen at Grady without any system in place to verify residency. Anyone from anywhere in the world can arrive at the Grady emergency room and say they live in Fulton or DeKalb, and the counties will be billed for their care. How can we have confidence in the amounts we pay for Fulton County indigent sick care when we have no proof of where patients truly live? The current system is open for exploitation, and must be corrected. The application of a residency verification system will provide additional confidence in the new leaders of the Grady Health System.

The future looks brighter for Grady now that the transfer of leadership to a team of skilled management professionals is imminent. I challenge the citizens of Georgia to join these leaders in support of Grady through charitable donation or volunteer service to the system. Together we can bring about change.